The USG Supramax freight market started the month with negative corrections. The market picture looked depressing from the owners’ point of view. Fresh enquiries were limited: there were barely any fronthaul (FH) cargoes and a pretty limited number of cargo offers on transatlantic (TA) routes.
Nevertheless, closer to the second half of the month, the market found some support thanks to increased volumes of petcoke cargoes. Therefore, there were quite a few petcoke offers in USG for shipments on TA and FH routes, while grain and coal requirements appeared on the US East Coast.
Freight rates for Houston-ARA transportation of a Supramax-lot of petcoke with spot laycans are at US$19.50/t on average. Meanwhile, deals for delivery of 50,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around US $23.50/t on average. Shipping costs for delivery of a Supramax-lot of petcoke from USG to EC India are at US$42/t on average.
Looking forward, the market is expected to start showing higher fixing activity levels as charterers and owners are eager to fix before the holiday lull begins in full force. There are some fresh grains and petcoke orders on TA, FHl and InterCaribs routes, which will provide solid support to the market throughout the rest of 2024.
by Brannvoll ApS, Denmark
